Forex markets and Turkey applications

Forex is the world's largest and fast growing financial market. The liquidity of the market is bigger than the sum of the world's fundamental stock exchange markets liquidity. Even though the Forex markets are generally used for exchanging currencies, precious metals like gold, silver, oil and the stocks index related to different stock markets are also traded. The participants of forex markets are commercial banks, central banks, portfolio management firms, insurance companies, big companies, international funds and individual firms. Forex Market, which is an over the counter market (OTC), does not have a central office for registering fx orders. Owing to the fact that in the forex markets trading among banks, corporations and individual investors are made on electronic platform, it is possible to make operations 5 days a week and 24 hours a day. Today forex is a very active market that every investor with different amounts of reserves can make investments via an internet network at any hour of the day. Trading in the forex market can be done through the leverage effect. An investor can trade at certain times of his margin providing that to obey the limitation of his platform. The high financial leverage ratio in this market provides high returns but also high risks. In order to gain profit from forex trading, the forex market should be analyzed through various methods. The essential methods of analyzing is; Fundamental and Technical Analysis. While Fundamental analyze is trying to envision the variables which formulate a financial asset, Technical Analysis does not take into account the variables which formulate the price and assumes that they cannot be estimated. The technical analysis is based on the fact that it can be used to estimate and to be interpreted after the price has been formulated. Owing to the fact that the forex market trading volume and investor's number in Turkey have reached to an important level, excessive risks of the market and rising amount of conflicts between the investors and intermediary institutions, makes the regulation and supervision of the market necessary. The forex market in our country, which has not been under regulation and supervision of anybody until 31 August 2011, was taken under control of The Capital Markets Board of Turkey via legal regulations. The Capital Markets Board of Turkey has made some legal regulations in order to organize the operations in the market and prevent the victimization of the investors. Key Words: Forex Markets, Leverage, Capital Markets Board of Turkey, Fundamental Analysis, Technical Analysis